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On May 12, 2006 in Peoria, Illinois, the attorney for the U.S. Department of Justice (DOJ) begged the court to dismiss all charges against IRS victim Robert Lawrence in federal District Court. The motion for dismissal came on the heels of a surprise tactic by Lawrence's defense attorney Oscar Stilley. The tactic threatened exposure of IRS's on-going efforts to defraud the public. The move put DOJ attorneys in a state of panic that left them with only one alternative: beg for dismissal with prejudice.
http://www.givemeli RTP2/PRA/ Pleadings/ 27_MtnDismissWPr ejudice.pdf>,

Stilley's tactic paid off. Sixty days earlier, the DOJ had indicted Lawrence on three counts of willful failure to file a 1040 form, and three felony counts of income tax evasion. The federal Judge dismissed all charges with prejudice , meaning the DOJ cannot charge Lawrence with those crimes again.

The trial was to have started on Monday morning, May 15th. On Wednesday, May 10, Stilley mailed a set of documents to the DOJ in response to DOJ's discovery demands. The documents revealed to DOJ for
the first time that Lawrence was basing his entire defense on an act of Congress, 44 U.S.C. 3500 - 3520, also known as the "Paperwork Reduction Act" (PRA).

In Section 3512 of the Act, titled "Public Protection," it says that no person shall be subject to any penalty for failing to comply with an agency's collection of information request (such as a 1040 form), if the request does not display a valid control number assigned by the Office of Management and Budget (OMB) in accordance with the requirements of the Act, or if the agency fails to inform the person who is to respond
to the collection of information that he is not required to respond to the collection of information request unless it displays a valid control number. In Section 3512 Congress went on to authorize that the protection
provided by Section 3512 may be raised in the form of a complete defense
at any time during an agency's administrative process (such as an IRS Tax Court or Collection and Due Process Hearing) or during a judicial proceeding (such as Lawrence's criminal trial).

In sum, the PRA requires that all government agencies display valid OMB control numbers and certain disclosures directly on all information collection forms that the public is requested to file. Lawrence's sole defense was he was not required to file an IRS Form 1040 because it displays an invalid OMB control number. Government officials knew that if the case went to trial, it would expose the fraudulent, counterfeit 1040. They also must have known that a trial would expose the ongoing conspiracy between OMB and IRS to publish 1040 forms each year that those agencies knew were in violation of the PRA. That would raise the issue that the Form 1040, with its invalid control number, is being used by the Government to cover up the underlying constitutional tort -- that is, the enforcement of a direct, unapportioned tax on the labor of every working man, women and child in America.

Any information collection form, such as IRS Form 1040, which lacks bona fide statutory authority or which conflicts with the Constitution, cannot be issued an OMB control number.
If a control number were issued for such a form, the form would be invalid and of no force and effect. Under the facts and circumstances of the last 24 years, it is safe to say that IRS Form 1040 is a fraudulent, counterfeit, bootleg form. Government officials responsible for this fraud should be investigated and face indictment for willfully making and sponsoring false instruments. Caught between a rock and a hard place, the DOJ and IRS decided not to let the Lawrence case proceed because it would reveal one critical and damning fact: The PRA law protects those that fail to file IRS bootleg Form 1040. The DOJ knew that it stood a significant chance of losing the case, and if that happened, the press and others would quickly spread the word, and leave only fools to ever file a 1040 again. Oscar Stilley's pleadings and documents made these points quite clear:

IRS Form 1040 violates the federal Paperwork Reduction Act (PRA) and is therefore a legally invalid form.
* Under the Public Protection clause of the PRA, no person can be penalized for failing to file a 1040 if the IRS fails to fully comply with the PRA.
* The PRA statutes explicitly provide that a PRA challenge is a complete defense and can be raised in any administrative or judicial proceeding.
* The IRS Individual Form 1040 has not and cannot comply with the requirements of the PRA because no existing statute authorizes the IRS to impose or collect the federal income tax from individuals.
That lack of bona fide authority makes it impossible for IRS to avoid violating the PRA.

We The People Foundation has researched the facts, law and circumstances surrounding this case, and has determined that:

*A public trial would have opened a "Pandora's Box" of legal evidence and government testimony under oath that would establish the IRS 1040 form as both fraudulent and counterfeit.
* Oscar Stilley's PRA defense "checkmated" the DOJ and IRS
* The Office of Management and Budget (OMB) appears to have been complicit with IRS in deceiving the public and in helping perpetuate the 1040 fraud by promulgating federal regulations that negate the plain language of the PRA laws passed by Congress and by allowing the IRS to continually skirt the explicit requirements of those statutes.

You Must Read "The Zen of No Tax" in order to fully understand the importance of this case.

This amazing book reveals why taxes cannot possibly supply sustainable government funding, how they destroy our freedoms and our environment , how the banks rely on taxes to perpetrate a continuing monopoly in the creation of money out of thin air, and why taxes are directly responsible for continuing debt slavery, warfare, death, and destruction throughout the world.

How can we gain support for a tax-free system if we don't understand the alternative?

Now that we have a legal remedy, it's all the more important that we know what the question is.

How can we fund government without taxes? The answer lies within "The Zen of No Tax".


Do We Need Taxes?
So, not only are taxes on labor unconstitutional, but they cannot be legally enforced. This is going to make waves. BIG WAVES. Now there is going to be a rush of new legislation in order to shore up the leaking tax system. The problem is, nearly everyone thinks that govt. is funded by taxation. And there are not a lot of people who want to give up any present govt. services. The huge challenge right now (and it is an opportunity as well as a challenge) is to provide an alternative to taxation and government borrowing that ensures social stability, security, equality of opportunity, peace, and a platform for prosperity. Unless we get this message out there NOW, we are going to see a whole lot more taxes of various natures, and/or a whole lot more government borrowing from the Fed. together with the forced surrendering of more of our freedoms and assets.

NOW HEAR THIS! Taxes have nothing at all to do with providing sustainable government services, except in the negative sense. That's right. All sustainable government funding comes from the creation of new wealth (savings and investments) in the private sector. What is happening right now with taxation is rampant robbery, enforced slavery, and child sacrifice! What else would you call it when we send our youth to die on foreign shores simply so a financial oligarchy can profit from war, destruction, debt and mayhem? And those same persons will not be satisfied until they control every aspect of your life, your energy, and your productive capabilities. Even if it destroys the environment and the natural world. Who needs the environment, anyway?
"The Zen of No Tax" holds the information you need to forever change your beliefs about taxes and government funding.

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Is There a Fair Tax that Can Replace the Income Tax?
The idea of anything like a "fair tax" is conceptually flawed. Every time one individual, group, or activity is targeted with a tax-related incentive, there is a corresponding group/etc. outside the target area that pays the price of that incentive. For any tax to be truly "fair", it must impact upon every person with the same emotional and causal effect. It's just not possible. The only "fair tax" is a "no tax". This may seem outrageous. However, it is both achievable and necessary, if we are to avoid the calamitous future towards which our civilization is heading. The answer lies in promoting the necessary surplus (savings and investment) in the private sector which government can then access with new interest-free money. This is both simple and mathematically sound. It is also a principle firmly grounded in long held Social Credit understanding first put forward by Major C. H. Douglas around 1930.

The Effects of Income Taxes
Congressman John Linden's "Fair Tax" proposal has some merit. However, a sales (consumption) tax in the order of 10% in the absence of income tax would be sufficient to jump start the US economy in short order; provided that the US Government also nationalize the "US" (not) Federal Reserve Bank . It is the interest on borrowed money that continually shackles the US Government and the American people. America does not "own" its own money supply! Until it does, inflation, destruction of the environment, social disfunction, and poverty will be a part of the American experience, and there never will be a truly "fair" tax.

Government must therefore create its own interest-free money in order to balance the new savings and investments encouraged by the no-tax incentive. This also prevents the destabilising deflation that would otherwise lead to recession, depression, and business failures. How do you run a business if you pay $1.00 for an apple, and have to sell it for $ .90?

A "Fair-Tax/No-Tax" regime will support every element of society. Labor will be supported by higher real wages, lower costs, lower interest rates and better employment opportunities. Businesses will benefit from lower costs, improved profit, bigger opportunities and less accounting expense. The environment will benefit with a positive wealth creation effect, restoring the damage already done. Better funded social services and higher real wages will provide the basis for more and better real parenting. With the "fair-tax/no-tax", the costs of home and business finance will drop, giving more persons access to home and business ownership. Rents will fall, reflecting the lower interest rates on mortgages.

A "Fair-Tax/No-Tax" will bridge the gap between the rich and the poor. Although the rich will no longer be able to capitalise on high interest rates, many more investment opportunities will appear, simply requiring a more active personal role in managing investments. Low interest rates will therefore bridge much of the gap between the rich and the poor without adversely affecting the wealthy. Need-related crime will largely disappear, making the world a safer and happier place for all.

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